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Since 1825, the area was used as the drill grounds of the Guard Regiment of the Prussian army. Some housing was constructed on the site late in the 19th century, but this was a short-lived use and the area soon became an open space used for sports. Between 1892 and 1904, the site served as the ground of Hertha BSC. The city of Berlin purchased the land in 1912 and developed it for sports use in 1913.

After World War II and the division of the capital city, the area was part of what became East Berlin, in the Soviet zone of occupation. A football and athletics stadium, with a capacity of 30,000 spectators, was built on the site in 1951, for use during the World Youth Festival that year. Known initially as Berliner Sportpark, East German municipal officials renamed the facility the Friedrich-Ludwig-Jahn-Sportpark the following year, to honour the centenary of the birth of the man known in Germany as the father of gymnastics. The stadium was refurbished in 1988 and its capacity reduced to the present-day number.

From 1963 to 1989, the facility hosted the Olympic Day of Athletics competition, modeled on a similar event staged each year in West Berlin. The meet saw the setting of several world records, including Uwe Hohn's record javelin throw of 104.80 meters on 20 July 1984 – the first time a throw of over 100 meters was made.

The European Pokal match between BFC Dynamo and Hamburger SV on 15 September 1982.

The national side played ten international matches at the stadium between 1951 and 1990, including its 13 March 1974 contest versus Belgium, which ended with a 5–2 victory in front of a record 30,000 spectators.

The stadium was used by the Berlin Thunder of the NFL Europe during 1999-2002. The amateur side of Hertha BSC (Hertha BSC II) also use the facility, when they expect an unusually large crowd or where there are security concerns related to a match. The final of the Berlin Cup is also held here each season.

In 2006 Hertha BSC played its UEFA Intertoto Cup semi-final match against FK Moscow (0–0) here, as well as its UEFA Cup qualification home contest against Georgian club FC Ameri Tbilisi (1–0). In 2016 Hertha played their Europa League qualification match against Brondby at the stadium and won 1-0, however Hertha lost the corresponding fixture away from home 3-1 and were knocked out of the competition.

The facility also serves as a concert venue and has welcomed performers such as Michael Jackson during his Dangerous World Tour on 4 September 1992, which was watched by 35.000 people.

The stadium is also regularly used for American football and serves as the home venue for the Berlin Adler. It is also the annual venue of the German Bowl since 2012 and was the site of the 2014 Eurobowl final, where the Berlin Adler defeated the New Yorker Lions 20-17.

The stadium is considered to be in a state of decay, satisfying neither current needs nor future plans. In order to host the 2015 UEFA Women's Champions League final, the stadium was temporary renovated at an estimated cost of €1.5 million - €2 million. This temporary renovation included new paintwork, refurbished player and visitor facilities, a new fire alarm system and a new lawn. That was however only the beginning, as the entire area is planned for a future complete redevelopment.

The area is highly popular and the needs for sporting facilities in Berlin are many. Even when the stadium is empty, the area around is crowded. The neighboring Mauerpark is popular among the citizens of Berlin. Its flea market attracts more than 40,000 visitors each Sunday.[3] The population pressure of Prenzlauer Berg is also high, with Pankow having the highest birth rate in Berlin.[4] In preparation for the plans, more than 40 users of sport facilities in Berlin have been interviewed.[4]

Being the second largest stadium in the city, in terms of seating capacity, and with the Olympic Stadium often considered too large, the stadium also plays a crucial role for the possibility of arranging major sports events in Berlin.[5] A redeveloped stadium would fit in Germany's bid for hosting the 2024 Summer Olympics or 2028 Summer Olympics.[4] If Berlin is awarded the 2024 Summer Olympics, the stadium is planned to be the center of the Paralympics.[6]

According to a preliminary draft concept, the redeveloped Friedrich-Ludwig-Jahn-Sportpark is to be an inclusion sports facility, which goes beyond simple accessibility. The plan includes new office spaces for associations and clubs in the grandstand of the stadium and in new buildings, and possibly a new sports hall for clubs and schools with two or three pitches, one or two artificial turf fields, additional tennis, beach volleyball and beach football fields. Further plans includes a day care center and a car park that could possibly also serve the popular Max-Schmeling-Halle.[4]

In January 2015, it was reported that the entire cost for the redevelopment of the whole area was estimated at up to €150 million. The redeveloped stadium will have a capacity of 20,000 spectators and offer future second division fit. The stadium will have soil heating, completely new seats, fully covered stands and become barrier-free. The distinctive floodlights will be preserved.[7]

In February 2015 it was reported by the Berliner Zeitung that the Senate of Berlin wants to rebuild the stadium, and that the reconstruction could begin at earliest in 2018 and be completed by 2023.[8] In February 2017, German media reported that the senate is planning to invest €170 million in the redevelopment of the area, including €85 million for a new stadium, and that the current stadium will be demolished by 2020.[9]